Skip to comments.The US economy will grind to a halt in the 2nd half of 2023 and the following year won't be much better, BofA says as it slashes its growth forecast
Posted on 06/23/2022 4:23:18 AM PDT by EBH
Bank of America has sounded the alarm on the US economy, predicting growth will stall next year and that the likelihood of a recession will surge.
In a note published on Friday — two days after the Federal Reserve hiked interest rates by 75 basis points — analysts said the Fed was too slow to aggressively tackle inflation, which is running at a 40-year high, and abruptly scrambling to get on top of it.
Now the bank sees GDP growth slowing to nearly zero by the second half of 2023 because of the influence of tighter financial conditions. While the risk of recession this year is low, Bank of America sees a 40% probability starting next year. And 2024 isn't looking much better, as analysts see only "a modest rebound" by then.
"Our worst fears around the Fed have been confirmed: they fell way behind the curve and are now playing a dangerous game of catch up," the note said.
Despite the Fed's more hawkish stance, the bank doesn't see inflation cooling enough to get down to the central bank's 2% target. Instead, it will persist around 3%, it said. While supply problems and demand for goods will ease, inflation expectations are anchoring at higher levels and wage pressures will likely be tough to reverse.
(Excerpt) Read more at finance.yahoo.com ...
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Never underestimate Joe’s ability to **** things up.
They can call it whatever they want - recession or whatever.
They can fudge the numbers to get whatever wordsmithing they want in the news.
I can think of a word to describe the economy Biden’s handlers have engineered.
Rhymes with rit row
It's already less than zero according to GDPNow estimates (0.02%). We're in a recession that will be deep and long because like usual the FED did not act fast enough and the Government spent way too much and printed way too much money.
Layoff reports are starting which will rapidly escalate, unemployment numbers will start rising and we'll be off and running.
Grind to a halt? No. Enter into a recession of unknown severity? Quite possibly, and likely before the second half of 2023.
I would think we’re in a recession when second quarter numbers are released.
It’s BofA one of the most woke organizations around? Go woke go broke. Be careful what you wish for.
I thought I saw a graph indicating the past quarter GDP growth was slightly negative
Then if the second quarter was negative, by definition the country is in recession,
Is that what you mean?
It is coming to its natural conclusion, which many have correctly foreseen and the current cabal in power thought they could hide with "media" and hot-button politics. A slow motion crash will most likely become a faster-moving crash as things become apparent.
As with all Ponzi schemes, the end is accompanied by two things courtesy of the scheme operators. Lying and cover up until the reality can no longer be hidden.
Building Back Better???
Of course it’s deliberate.....what the hell do people think build back better means?
Gotta tear down what’s there before it can be built back.......the “better” part is just a synonym for socialism.
We’ve already had one quarter of negative GDP and Q2 will be negative as well. This is an easy prediction but it’s already here. 2023 will remain in recession and more realistically stagflation.
I think we’re already in the beginnings of it.
Powell said as much - raising interest rates until inflation comes down will drive an economic shut down - unsaid, is that the key indicator will be when commodity prices fall. Forget Recession, look for a Depression when that happens.
"Recession" will be redefined so we are never in one. Well, never when the communists are in charge.
That’s possible, but people know that things suck right now.
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